Sales tax holiday has arrived

August 13, 2008 10:00:00 PM PDT

AUSTIN, TX --

The 10th annual Texas sales tax holiday is here and will run through Sunday as families prepare to send children back to school. Texas shoppers get a break from state and local sales taxes on August 15, 16 and 17, 2008 - the state's annual tax holiday. Lay-away plans can be used again this year to take advantage of the sales tax holiday.

The law exempts most clothing and footwear priced under $100 from sales and use taxes, which could save shoppers about $8 on every $100 they spend. Backpacks under $100 and used by elementary and secondary students are also exempt. A backpack is a pack with straps one wears on the back. The exemption during the sales tax holiday includes backpacks with wheels, provided they can also be worn on the back like a traditional backpack, and messenger bags. The exemption does not include items that are reasonably defined as luggage, briefcases, athletic/duffle/gym bags, computer bags, purses or framed backpacks. Ten or fewer backpacks can be purchased tax-free at one time without providing an exemption certificate to the seller.

Texas Comptroller Susan Combs estimates shoppers will save about $54 million. She adds that the tax loss is not expected to have a significant impact on Texas sales tax collections. She says Texas sales tax revenue "continues to grow at a healthy pace."